Nuclear Is Back: PA Governor Shapiro Pushes For “Fast Track” Re-Open For Three Mile Island

The plan to power AI and data centers using nuclear power just caught another tailwind, just days after we wrote about Microsoft helping bring Three Mile Island back online. And the latest (maybe unexpected) support comes from Pennsylvania’s Democratic governor.

Following Microsoft’s agreement to purchase power from the dormant Three Mile Island nuclear plant, Pennsylvania Governor Josh Shapiro urged regulators to prioritize the reactor’s connection to the electrical grid, according to a new report from Barron’s.

In a letter to PJM Interconnection, the grid operator serving Pennsylvania and several other states, Shapiro emphasized that the plant should not face the extended delays typical for new developments, as Microsoft aims to start utilizing the reactor’s energy by 2028.

The energy generated by the reactor, enough to supply about 700,000 homes, will be used to power Microsoft’s data centers, the report says. 

PJM Interconnection responded to Shapiro’s concerns, stating that it is developing a “fast track” process to prioritize certain electricity projects, potentially speeding up the reactor’s return to service.

Shapiro wants the reactor to “be allowed to come online as quickly as possible rather than waiting in the queue as if they were an entirely new development,” he wrote.

PJM commented: “PJM was glad to see the planned repowering of Three Mile Island Unit 1. Adding megawatts to the grid during this period of tightening supply/demand conditions will help reliability of the system.”

Recall we wrote last week the owner of Three Mile Island is investing $1.6 billion to revive the plant and has agreed to sell all of its output to Microsoft, which is seeking power for its data centers. 

This momentum continues our “Next AI Trade” that we pointed out in April of this year, where we outlined various investment opportunities for powering up America, playing out.

The restart of Three Mile Island, specifically to sell energy to Microsoft to power its data centers, will be the most material advancement in the nuclear/AI thesis since we first outlined it.

Constellation Energy Corp. plans to restart the Three Mile Island reactor by 2028, according to a Friday statement. The reactor, closed in 2019 due to economic challenges, will reopen despite the site’s other unit being shut down nearly 50 years ago after a major nuclear accident, according to Bloomberg.

The Bloomberg report noted that Microsoft has committed to a 20-year energy purchase from a nuclear facility, its first dedicated 100% nuclear energy deal.Financial details were not disclosed.

Constellation Chief Executive Officer Joe Dominguez said: “Policymakers and the market have received a huge wake-up call. There’s no version of the future of this country that doesn’t rely on these nuclear assets.”